New Delhi, June 13, 2017: North Eastern Carrying Corporation Limited (NECC) organized a press conference on GST at The Lalit. NECC is an integrated logistics solutions provider with presence across India and Nepal and having an established operational set up in Bhutan and Bangladesh. NECC has 250 offices across 28 states and 4 countries- India, Nepal, Bhutan and Bangladesh. Current warehousing of 1.5 million sq feet – includes owned and leased under management.
We work with leading companies across the FMCG, Paper, Pharma, Automotive, Textile, Chemicals, Steel and Telecom sectors.
Our current road transportation services provided include small consignments retail booking, bulk movements, full truck load services, storage facility, Part Truck Load (PTL)/Parcel Load movement, Over Dimensional Consignment (ODC), containerised movement of cargo, freight management.
NECC recently secured a prestigious Rs. 450 crore mining contract from Tata Steel to be executed over 4 years. The contract is towards carrying raw materials and mining products from Tata Steel’s Joda and Sukinda mines to the Company’s factories.
Business strategy and outlook
NECC is gearing up its overall capabilities with a special focus towards warehousing given the opportunity it expects to unfold in this segment post GST on the back of warehousing consolidation. It plans to expand its footprint from the current 1.5 mnsqft, across 50 major cities over two years throughout India with its asset light approach. The warehousing and distribution segment is to be headed by Mr. Ramesh Krishnan, an industry veteran.
The other key areas of focus for the company include:
· Expanding PTL business – which is presently underserviced
· Increase presence in South
· Leveraging strong relationships with regional transporters; building warehousing capabilities
· Looking at expanding customer base across sectors
· Improving wallet share from FMCG and Pharma companies expanding operations in Guhwati and Sikkim
· Becoming multi modal operator
The thrust for all these initiatives will be on ‘Profitable growth’.
GST perspective
From a macro environment perspective, we are particularly excited about the introduction of GST. GST would simplify the taxation system which would drastically reduce time at various check post throughout the country, thereby enabling more number of trips on various routes and making certain routes viable which currently are not attractive to ply not only for us but for the logistics sector on the whole.
Post GST, deliveries of products will directly be carried out to the destination or stocking at strategic locations unlike now which will see a lot of expansion for the industry and dominant players will stand to benefit.
It has been a commendable achievement by our honorable PM Shri Narendra Modi in moving towards a simplified and efficient taxation system, which will bring about significant savings across the board. We hope he maintains this Policy momentum which is seeing an encouraging improvement in the business environment.
Financial overview
During FY2017 the financial performance is as follows:
• Revenue at Rs 548.70 crore up by 1.66% over FY16 Rs 539.75. crore
• EBITDA at Rs. 19.76 crore vs Rs. 21.32 crore in FY16, margins at (8.86)%
• PAT at Rs. 5.60 crore down by 0.71% over FY16 Rs. 5.64 crore
• EPS at Rs. 1.12 per share annualized
Corporate Comm India (CCI Newswire)
